Step 1: Identifying homogeneous strategic types

Cluster analysis was chosen as multivariate technique to group sample companies according to their strategic orientation as measured by a theory-based set of strategic variables.

I propose that organizations within the same industry pursue distinctly dissimilar strategies. Organizations with similar strategies within the same industry can be clustered into a limited number of strategic types

. The variables used for cluster analysis are based on existing theory in the field, particularly previous operationalizations of Miles and Snow's (1978) strategic types defender, analyzer and prospector. The aim of this analysis is i) to generate groups of companies with distinctly dissimilar strategies and ii) to compare the empirically derived findings with the strategic typologies proposed in the literature (Miles and Snow, 1978; Zammuto, 1988).